Anticipatory Set

• Describe the following questions with your neighbor

1. What is something that you or someone you know collects? (stamps, baseball cards, etc..)

2. What makes those items valuable?3. Could the same be applied to money?4. What happens if there is too much money

printed?

InflationGermany has huge war expenses

Gov’t spends more than it takes in

Ger prints more money

Value of money goes down

Prices go up

Gov’t prints more money

Cycle continues

Economy is in danger of collapsing

• Postwar Europe– New democracies did not last

• No experience with democracy• Coalition gov’t: different parties did not

always agree

– Weimar Republic has trouble• Ger ppl unhappy with the Treaty of

Versailles• Inflation is stopped by Dawes Plan

– US banks loaned GER $200 mil– Stabilizes Ger economy

Section 2A Worldwide Depression

Coalition gov’t: temporary alliance of several parties

Party: group of people with same political ideas Inflation: value of money goes down & price of goods goes up

Stabilize: to make stable, not shaky

• Great Depression– Caused by Stock Market Crash

• Stocks were sold for more than they were worth

– US economy falls & spreads to world• Soaring stock prices• Uneven distribution of wealth• Surplus of agricultural products• Banks and investors took their $ back from

Europe

– Roosevelt’s New Deal fights Depression• Large public works projects helped to

provide jobs

Stocks: ownership of a company

Distribution of wealth: how wealth is spread between rich and poor Surplus: extra

Public works projects: jobs created by the gov’t

A Worldwide Depression• In groups of 2-3 use book/notes to state REASONS for

the following developments1. In new postwar democracies, there were frequent

changes in gov’t2. In Ger, the Weimer Republic was weak from the start3. Postwar Ger suffered from severe economic inflation4. The US had a flawed economy5. October 29, 1929 the US stock market crashed6. A long depression followed the crash in the US7. Collapse of the US economy affected countries

worldwide.8. In Brit, the National Government rescued the economy9. In France, the Popular Front was formed as a coalition

gov’t10. Socialist gov’ts in Scandinavian countries dealt with

the economic crisis successfully

A Worldwide Depression1. In new postwar democracies, there were frequent

changes in gov’t• Had little experience with representative gov’t; having many

political parties made it difficult to reach agreements in gov’t

2. In Ger, the Weimer Republic was weak from the start• Lacked a strong democratic tradition; many political parties;

ppl blamed Weimer Republic for defeat & Treaty of Versailles

3. Postwar Ger suffered from severe economic inflation• Gov’t printed $ for war expenses & reparations; devalued

money

4. The US had a flawed economy• Uneven distribution of wealth, overproduction of goods and

agriculture lessened demand for consumer goods

5. October 29, 1929 the US stock market crashed• Investors believed stock prices would drop so they tried to sell

high-priced stocks they had bought on margin but no one wanted to buy

A Worldwide Depression6. A long depression followed the crash in the US

• Unemployment rates rose as production, prices, & wages fell; businesses & banks closed; savings and farms were lost

7. Collapse of the US economy affected countries worldwide.• Countries had war debts and depended on US for loans and

investments; worried US banks would demand loan repayments; US investors pulled their $ out of Europe; US market for imported goods fell; high tariffs decreased world trade and market demand

8. In Brit, the National Government rescued the economy• High protective tariffs, increased taxes, regulated currency, lowered

interest rates to encourage industrial growth9. In France, the Popular Front was formed as a coalition gov’t

• Economic crisis in France led to political instability & leaders feared growth of antidemocratic forces

10. Socialist gov’ts in Scandinavian countries dealt with the economic crisis successfully

• Tradition of cooperative community action & gov’t sponsored public works programs kept ppl employed and producing; gave $ to those who needed it

Political Cartoon• Symbolism

– Cartoonists use simple objects, or symbols, to stand for larger concepts or ideas

• Exaggeration– Sometimes cartoonists overdo, or exaggerate, the physical characteristics

of people or things in order to make a point

• Labeling– Cartoonists often label objects or people to make it clear exactly what

they stand for.

• Analogy– An analogy is a comparison between two unlike things that share some

characteristics. By comparing a complex issue or situation with a more familiar one, cartoonists can help their readers see it in a different

• Irony – Irony is the difference between the ways things are and the way things

should be, or the way things are expected to be. Cartoonists often use irony to express their opinion on an issue.

Worldwide Depression Political Cartoon

• Draw a political cartoon based on the Worldwide Depression.

• It should include a country besides the US and cause and/or effect of Worldwide Depression

• Be sure that your political cartoon includes:– Symbolism– Exaggeration– Labeling– Analogy– Irony

• Share your cartoon with your classmates and see if they can guess what it is about.